Cake City: Designing people dreams in form of cake

When it comes to cake, we are the best in town," says Mohammed Zahir, CEO of Cake City, one of Kenya's fast-growing cake companies. Of course, every person always markets their product as the best, but Zahir says it with so much confidence and conviction he leaves no doubt in mind that indeed, when it comes to cake, none is better than Cake City's.

Giving us insights into the company’s roots, Zahir tells us that the company was founded in 2012 by Hasnain Noorani, a Kenyan businessman whose businesses spread across hospitality, transport, and real estate, among other sectors.

Ten years ago before Cake City was launched into the market Kenyans did not have a variety of cakes to choose from. Regular flavors such as Black Forest, Chocolate and Red velvet cakes were the only kinds of cakes that were available in the aisles of cake shops and supermarkets.

With Cake City, Noorani's aim was to offer the Kenyan market a wider variety of cakes to match those he had seen abroad during his travels. The company hired talented pastry chefs from India to bring in different types of pastries and new varieties of cakes and flavours.

Armed with something new, Cake City launched its first shop in Westlands, one of Nairobi's affluent business districts. The building hosting the shop is modeled as a cake with dripping chocolates and candies.

BUILDING A BRAND FROM SCRATCH

Getting the word out that there was a new kid on the block offering more than just ordinary cake, however, required more than building a fairytale-like cake shop. The pioneer executives understood the assignment very well. They embarked on a coordinated publicity campaign involving participation in cake festivals and any other festival where pastry products get to be displayed.

They also explored social media, an emerging but powerful marketing tool. At the time, Facebook was the most popular social media network. Zahir said they took advantage of the platform and credited it to some of its initial success.

For the 8 years that he has been at the helm, Zahir has captained growth at Cake City, spearheading entry into new markets, first in Nairobi City and now in other satellite towns.

Today the company enjoys an impressive cakeshop chain comprising ten branches. Two of those branches opened earlier this year representing a remarkable shift in the company's growth strategy.

"We are now trying to reach new markets by opening stores and branches a bit far from Nairobi," Zahir explains. Sales have also been burgeoning. Today, about 72,000 kilograms of cake are dispatched from Cake City to be enjoyed by customers annually. That is a tremendous amount of cake. Considering that half a kilogram of cake is usually enough to be shared among six people, the number of people that have tasted the quality of Cake City cakes is astronomical.

CUSTOMER-CENTRIC APPROACH

From the word go, Cake City has always had the customer in mind. The variety of cakes that they brought to market was informed by customer desire for more than just buttercream cake. If you visit one of Cake City's shops today, Zahir is confident that you wouldn't leave without a cake that far exceeds your expectations. Out of the 55 different flavors on offer, it would be difficult to imagine that you'd lack one that captures your heart and most importantly, your taste buds.

The company reveals that out of the many options available, fresh cream cakes are the most popular among customers. Trizah Okal, the sales manager at Cake City, explains to us what this cake is, and why it is so popular. "Fresh cream is a totally different product," she explains. "It’s recipe makes the cakes taste more of ice cream than the usual butter which is what we get out of there in the market." Milky caramel, blueberry, and chocolate chip are among the highly soughtafter cakes in this category.

Cake City does not however discriminate. Okal reveals that although Fresh Cream is their signature cake, they certainly don't hesitate to bake buttercream cakes if that is what the customer craves. "Obviously our black and white forest is completely different from what is there in the market," Okal is quick to point out. "If you compare with other cake shops or bakeries, I will proudly say that we are the best."

When it comes to satisfying customer demands, Cake City stops at nothing to ensure every customer leaves with a smile. This at times involves attending to incredibly difficult-tofulfill orders such as delivering a wedding cake a fortnight to the event. his team will also deliver it to the venue and have it set up for the customer. It's this capability that has enabled Cake City to even prepare instant cakes, the kind you receive when you walk in into one of their branches without prior ordering. Just like its other cakes, Okal assures that these have the same quality and freshness that Cake City cakes are known for.

Okal reveals that Cake City’s specialty is to bring people’s dream cakes into reality. This alludes to customized cakes which are also becoming increasingly popular according to the sales manager. "What people dream is what we create," she says. "If you'd like a Cheetah cake, we will make that. If you fancy a snake, we will make it." The company even recently made a cake in the form of a human face, just to demonstrate its capabilities when it comes to producing custom cakes.

The cake went on to win the gold award at the 2022 Cake Festival, highlighting the level of artistry and professionalism that went into the process.

To give the utmost convenience when ordering cakes, Cake City also maintains an active presence online. With time, Zahir observes that online trends have changed, and today Instagram is one of the leading drivers of business when it comes to online sales. The company has capitalized on this opportunity by creating reels and TikTok videos to keep customers engaged. For a smooth online process, customer service agents are always a phone or text away to assist customers.

Depending on what type of cake is requested, Zahir reveals that customers can anticipate having their cake delivered between 2 and 24 hours from the time of ordering. Such turnaround times require an efficient logistics team and Cake City has a fleet of cars, trucks, and motorcycles to ensure that whatever size of cake you order, it shall be promptly delivered. It also helps to have many branches as this means that the order will always come from a branch closest to the customer, significantly cutting down on delivery times and other associated costs.

SUCCESS FOLLOWS EXCELLENCE

Now in his 8th year as CEO of Cake City, Zahir believes that a focus on excellence is the secret behind the successes that the company has enjoyed over the years.

"I am very keen on Excellence," Zahir admits. "I believe if we focus on excellence, success will follow." This belief has, in turn, shaped how Cake City operates and is arguably one of the reasons it still survives in a market where many new startups fail to stay long enough to celebrate their third anniversary.

Cake city is known for its fresh cream cakes among other high-quality cake and pastry products

Cake City is however today facing tremendous challenges mainly due to raw material price inflation. From wheat flour to eggs, ingredient prices are increasing at a rate far much faster than Zahir is comfortable with. "We cannot increase our prices every time," he laments. "So it becomes a challenge where now we have to still stay afloat, but our margins reduce drastically."

Compromising on quality to save margins is however not something that Cake City is willing to explore, at least not while Zahir is in charge. "I am not those who chase and want to make quick money," he says. "We give the best in what we do. Everything else follows." To remain afloat, the only trick available to Cake City now is volumes. "That is what is helping us thus far," he admits.

Building a sustainable culture is also helping bring in some savings to offset the rising costs of inputs. "We are keen to minimize wastage of energy and are always training our people on how to use these resources responsibly." When it comes to packaging, the company does not compromise on its environmental promise. "We package everything in cardboard boxes which are environmentally friendly," he says.

BUILDING A NATIONAL BRAND

Cake city CEO Mohammed Zahir (in blue shirt) and team during the opening of one of Cake City's branches

After conquering the Nairobi market, Cake City has its eyes on other towns outside Nairobi. "Now that we have really taken care of all the areas of Nairobi, we want to reach the other counties. Now it's time to move to Mombasa and Kisumu."

That journey has already started with the two locations that the company recently opened outside Nairobi.

Zahir notes that there is indeed demand for their products outside the capital and he is already receiving requests to set up shop elsewhere. Like previous expansions, these too are expected to be organic to cushion the business from the risks of expanding too fast.

An optimistic Okal, however, can't wait for Cake City to be in every in each and every city. Only then will she be able to see her dream of Cake City becoming a national brand come to fruition. His Boss Zahir is working towards that "and if there is more demand maybe also go regional and expand into the rest of East Africa." His parting shot gives a summary of why the business exists. "People are celebrating every day. Every day we have occasions," he says. "So if they think to celebrate and they would want a cake, why not have a cake city cake and have an experience like no other?"